The market for travel insurance is expected to grow at a CAGR of around 17.1% from 2020 to 2027 and predicted to reach the market value of around US$ 65,940.7 Mn by 2027
Travel insurance is designed to protect travelers from certain financial risks and losses that can occur while traveling which include medical expenses, lost luggage, flight delays, or trip cancellation among others. These are useful for protection against domestic as well as abroad traveling. Most of the commonly purchased insurance policies include domestic travel insurance, international travel insurance, medical travel insurance, group travel insurance, family travel insurance, and multi-trip insurance. In most of the scenarios, travel insurance companies reimburse covered financial losses after filing a claim and its approval. Filing a claim means the submission of proof of lost liability so that the company can verify what happened and needed to be reimbursed.
The increasing number of travelers across the globe including international and domestic are boosting the demand for travel insurance in the market. The rising awareness among travelers about the benefits of travel covers is supporting the market growth. The offering of insurance cover at the time of booking by the travel booking brands is another factor bolstering the market value. The rapidly increasing disposable income, favorable globalization trends are further expected to propel the growth over the forecast period from 2020 to 2027. Furthermore, geo-location, application program interface (API), artificial intelligence (AI), data analytics, and global positioning system (GPS) are likely to provide potential opportunities over the forecast timeframe from 2020 to 2027.
On the other hand, lack of awareness about travel insurance policies among some specific population base, low consumer experiences in terms of travel insurance coverage, high rates, and services by third-party providers of travel insurance remains a primary concern are some of the factors likely to restrict the growth to an extent over the forecast period from 2020 to 2027.
Covid-19 Impact on the travel insurance market
The Covid-19 pandemic has negatively affected the market because of its restrictions on traveling and social distancing. People across the globe are facing major restrictions on domestic as well as international flights, which are preventing them from opting for major travel packages as a result insurance market has experienced setbacks in 2020 majorly. The nationwide lockdown and travel restrictions have negatively affected the travel industry. Moreover, the announced vaccine and announcement of Covid vaccine travel insurance is likely to give a boost to the market.
Segment Instance of Global Travel Insurance Market
Single-Trip Travel Insurance segment accounted for the maximum revenue share in the global market
Based on insurance cover, single-trip travel insurance policies cover just the single holiday and end when the traveler returns home. These types of policies are cheaper than the annual policies. The single-trip travel insurance segment is gaining growth due to its lesser cost and increased marketing by the insurance brokers.
North America accounted for the maximum revenue share in the Travel Insurance Market
In 2019, North America is leading the market with a major revenue share (%), and the region is also projected to maintain its dominance over the forecast timeframe from 2020 to 2027. The increasing number of travelers owing to expanding geriatric population is supporting the regional market value. The high per capita income and the cost of travel is less in other countries for the US residents is another factor supporting their interest in international traveling.
Asia pacific is projected to exhibit fastest growth over the forecast period from 2020 to 2027
Asia Pacific along with its major economies projected to exhibit the fastest growth (%) in the travel insurance market over the forecast period from 2020 to 2027. The increasing disposable income of China and India is bolstering the number of foreign as well as domestic travelers, which is another factor accelerating the market value. The rising incidences of buying insurance, while booking tickets due to marketing done by travel booking brands are supporting the market growth.
Key Players Profiled
The players profiled in the report include Allianz Group, American International Group Inc., Assicurazioni Generali S.P.A, AXA S.A., Insure & Go Insurance Services Limited, Seven Corners Inc., Travel Insured International, TravelSafe Insurance, USI Insurance Services, and Zurich Insurance Co. Limited among others.
Market By Insurance Cover
Single-Trip Travel Insurance
Annual Multi-Trip Travel Insurance
Long-Stay Travel Insurance
Market By Application
Market By End User
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
The market for travel insurance is expected to reach a market value of around US$ 65,940.7 Mn by 2027.
The travel insurance market is expected to grow at a CAGR of around 17.1% from 2020 to 2027.
Single-trip travel insurance is the leading segment by application in the travel insurance market
The increasing number of travelers across the globe, rising awareness among travelers about the benefits of travel covers, rapidly increasing disposable income, and favorable globalization trends are some of the factors driving the market growth.
Allianz Group, American International Group Inc., Assicurazioni Generali S.P.A, AXA S.A., Insure & Go Insurance Services Limited, Seven Corners Inc., Travel Insured International, TravelSafe Insurance, USI Insurance Services, and Zurich Insurance Co. Limited among others are some of the prominent players in the travel insurance market.
North America held the highest market share in the travel insurance market
Asia Pacific is expected to be the fastest growing market over the forecast period